As I have come to expect from you another thousands words of our language completely butchered without making a single coherent point. The examples you gave are what happened in places like where you live but things are different other places. Here’s a story of one of my short sellers who fell prey to someone espousing your brand of wisdom.
A young engineer with a good career full of promise got married and wanted to buy a house. He grew up in the gridlocked Nirvana and wanted to buy there but happened upon an older female agent with abroker license and 25 years in the business no less. She convinced him he should buy one of those prime 1950’s era homes, You know the ones you said were the best built of all. He looked and found one in one of those great neighborhoods far north of Adams Ave that you love to advocate. The house was not plagued with Mello Roos or an HOA and had what you would call unlimited possibilities. It was on a much bigger than normal lot for the area. Even though it was an SFR the lot was zoned multi-family. It would have gotten BG”s 5 star rating as a brilliant choice. So he leaped at the opportunity!
Did he finance it 100%? Of course not, he put 10% down (over $60K) and did an 80/10/10 loan. Did he HELOC his equity out of the house? No he proceeeded to pay down the 10% home equity piece asap and was now into it over $120K of his money. Yes just another intractable deadbeat. Then this masterpiece of the 1950’s collapsed around him. The plumbing failed. Because it was 1950’s construction it’s on a raised foundation so he didnt realize the waste lines failed for about a year. It was not until his home was filled with flies and maggots did he realize. So what did our intractable deadbeat do? Did he open a HELOC to fix the problems? No, he spent another 15K of his money to fix the plumbing. Problem solved? NO the waste lines leaking under his house for at least a year caused the foundation to crumble. Time for our intractable deadbeat to extract equity via a HELOC or better yet walk away? No, he spent another $20K fixing the foundation. All good? No the crumbing foundation weakened the chimney which was now falling off his 1950’s era masterpiece. Examing the house closer he also realized the house had mold issues. SO now our intractable deadbeat who kept paying his taxes and had invested almost $200K of his own money now was looking at a minimum of $50K more to address current issues on a house that would still be more than $200K underwater on the 1st TD. The house was a major health hazard and by now he had 2 infants. So what do you want this slimebag to do? Hang in there? Rent it out until things turn around? Walk away and have his credit impaired so he cant buy a house for his family for at least another 7 years? Or should he just see the writing on the wall and get out with the least possible damage to his credit?
You see this guy listened to someone exactly like you who spouted the exact same viewpoints of where and how one should live in San Diego and it destroyed his life. So before you spend anymore time on your high horse spouting off about all you know about RE because you used to pretend to be in this business 20 years ago think about that guy and realize you dont know a damn thing about it!
Don’t beleive my story? Ask jpinpb, she’s been in the house.
BTW, he’s now back living in gridlocked Nirvana and couldnt be happier.
